{"id":5595,"date":"2014-03-05T00:00:00","date_gmt":"2014-03-05T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/03\/us_supreme_court_considers_whe"},"modified":"2022-05-05T12:40:02","modified_gmt":"2022-05-05T17:40:02","slug":"us-supreme-court-considers-whe","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/us-supreme-court-considers-whe\/","title":{"rendered":"US Supreme Court Considers Whether to Limit Securities Fraud Lawsuits"},"content":{"rendered":"

Although a decision is not likely until June in Halliburton v. Erica P. John Fund<\/em>, it doesn\u2019t look as if the US Supreme Court will seek to overturn the \u201cfraud on the market\u201d theory, set up in 1988 in Basic Inc. v. Levinson<\/em>. In that earlier ruling, it was determined that investors are allowed to depend on a presumption that the stock price of a company reflected all public information about the entity. This theory has allowed investors to ban together through class action securities certification without having to provide individual reliance of evidence.<\/p>\n

In the securities case before the court, the investors\u2019 fund claims that Halliburton misrepresented its liability related to asbestos litigation, benefits obtained from a merger, and revenue from a construction contract. Meantime, Halliburton and its allies are contending that investors shouldn\u2019t be able to bring a class action case because of an economic theory that is based on the efficiency of markets.<\/p>\n

Four of the justices recently appeared to be welcoming a challenge to the fraud on the market theory. Justice Samuel A. Alito Jr. wrote in a concurrence in Amgen V. Connecticut Retirement Plans and Trust Funds<\/em> that there has been evidence recently to indicate that such a presumption may be based on a \u201cfaulty economic premise.\u201d<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Although a decision is not likely until June in Halliburton v. Erica P. John Fund, it doesn\u2019t look as if the US Supreme Court will seek to overturn the \u201cfraud on the market\u201d theory, set up in 1988 in Basic Inc. v. Levinson. In that earlier ruling, it was determined that investors are allowed to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3804],"tags":[],"class_list":["post-5595","post","type-post","status-publish","format-standard","hentry","category-class-action-lawsuits"],"yoast_head":"\nUS Supreme Court Considers Whether to Limit Securities Fraud Lawsuits — Investor Lawyers Blog — March 5, 2014<\/title>\n<meta name=\"description\" content=\"Although a decision is not likely until June in Halliburton v. Erica P. 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